Do you need rental car insurance?

Whether renting a car on vacation, or you just need a vehicle for a few days while yours in the shop, finding a rental car is as easy as clicking on the “reservation” button. Making the decision to protect yourself with rental car insurance should also be a no-brainer. Like all aspects of your life, buying auto insurance for your rental means travelling with peace of mind knowing you’re covered just in case.

Insurance from the rental car company

Purchasing auto insurance from your car rental company certainly is convenient, but it can end up costing you significantly more than you should pay. Rental car companies usually offer a collision damage waiver that transfers the financial risk of an accident back onto the company, but there are usually exclusions so be sure to carefully examine the rental agreement’s fine print. Depending on the rental company, auto insurance can cost from $9 up to $25 a day for coverage, over and above the cost of your daily rental fee.

The credit card option

Many of us use our credit cards to book a rental car. If you pay an annual fee for your credit card, it probably offers insurance on your purchases, so for a rented vehicle this should include collision, damage, and loss insurance. Always call the number on the back of your card to check what coverage your credit card policy will and will not include. Specifically, make sure any coverage includes third-party liability because not every credit card holder’s benefits will be the same.

Year-round rental car insurance

For many people it makes sense to get it and forget it! That is, add coverage known as Legal Liability for Damage to Non-Owned Automobiles to your existing auto policy for approximately $50 a year. Clearly, this can be a simple and affordable option for those who rent a vehicle even just once a year.

Ask an insurance expert

When it comes deciding what to do about rental car insurance, feel free to talk with the licensed insurance brokers at Mitch. Call us at 1-800-731-2228 or email us at info@nullmitchinsurance.com. We’re always happy to help!

Mitch Team

The articles you'll find on the Mitch blog are all the result of a team effort, contributed to by one or more of our RIBO licensed insurance brokers and/or other Ontario insurance experts. Contributors to our blog include:

• Adam Mitchell (RIBO) - President and CEO of Mitch Insurance Brokers
• Nick Kidd (RIBO) - Chief innovation officer at Mitch, & director of business insurance
• Alex Gemmiti (BSc, CIP, RIBO) - Service team lead at Mitch Insurance
• Jesica Ryzynski (RIBO) - Insurance broker, claims specialist, and account manager at Mitch Insurance

Learn more about the Mitch Team

See Full Bio